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Worldatwork Exam T7 Topic 2 Question 84 Discussion

Actual exam question for Worldatwork's T7 exam
Question #: 84
Topic #: 2
[All T7 Questions]

Which of the following should be used when discounting a benefit in order to determine the present value of the defined benefit obligation and the current service cost?

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Suggested Answer: C

by Glenn at Apr 08, 2024, 06:16 PM

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Marti
1 days ago
Net present value? Are you kidding me? That's basically the same thing as the time value of money. I think you're overcomplicating this, my friend. It's gotta be B - time value of money, all the way.
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Kristofer
3 days ago
I don't know, you guys. What about net present value? Isn't that also a way to discount future benefits? I'm kind of torn between B and C here. Anyone have any thoughts?
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Bulah
4 days ago
Haha, yeah, this exam is probably designed to trip us up. I mean, who even considers the corporate vision when discounting a benefit? That's just absurd. I'm with you guys - option B is the way to go.
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Mitzie
5 days ago
Ooh, this is a good one! I think the answer has to be B - time value of money. That's the classic way to discount future benefits to get the present value. Unless this exam is trying to trick us, in which case all bets are off!
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Kristeen
7 days ago
Well, the question is clearly asking about how to determine the present value of a defined benefit obligation, so I think the time value of money is a key factor. I'm leaning towards option B, but I want to hear what the others think.
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Bok
9 days ago
Hmm, this question seems a bit tricky. I'm pretty sure the answer has something to do with discounting the benefit, but I'm not sure which approach to use. The time value of money seems important, but I'm not sure if that's the whole story.
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